I didn’t see an inside bar for the usd/jpy yesterday.
I did however get in on the gbp/jpy. After sitting on a 50 pip paper profit I added another lot when it dipped back down. I know adding a lot is not part of this system but I couldn’t help myself. Now I have one lot that’s down 9 pips and one that’s up 8. In case you haven’t noticed I’m just a little bullish on the guppy.
a wonderful weekend to all!!!
stopped out now on the GBPJPY. That makes 4 straight losses for me, after opening my live account. (don’t worry it’s still only childs play). One thing this system doesnt do (obviously), is identify regions where perhaps you should not enter. I note that in the past week, many currencie’s incidentally my last 4 losses, have started a complete about turn on their highs/lows, or have simply been venturing into new highs/lows where there’s uncertainty.
i found it also works at 4 hr TF, one condition is the candle is quite near the SMA curve…once it leaves the curve far away, it does retrace…and i m testing another sys which is great atm…got 6 trades win and 1 of them lost…cheers…
stopped out on both my guppy positions (-70 & -100) just to watch it pop right back up to within 15 pips of my purchase price.
hate to do it but I’ll probably end up buying it back.
in hindsight I should’ve waited for a retracement. After the run up it was due for a breather. S1 on the pivot points held up nicely.
I guess we need to look at the bigger picture before we place our orders to filter out some of the more dangerous setups. Better to error on the side of caution.
Inside candle on the daily USD/JPY for today
since this pair is so lofty at the moment (much like the gbp/jpy of last week) I’m willing to try a different approach. With a sysmetrical triangle forming on the hourly chart I will place a buy stop order at 5 pips above the inside candle on the daily chart (per system rules) and also place a sell stop order at 5 pips below the inside candle (same tp and sl for both).
I’ll let you know how it turns out. Wish me luck!
littlemay; can you explain your 4hr system in more detail and give a screenshot example? Also what is this other system you speak of?
Placing an order both above and below the inside candle would have worked nicely for the usd/cad today. Seeing that the usd/cad had a long run in one direction would indicate that this type of trade is less risky. If an order had been placed to buy at 5 pips above the high of the inside candle you would be sitting on 45 pips at the time of the writing. At 45 pips in your favor you could easily move your sl to break-even and trail it up from there.
i ll post it when i m getting used to it…and backtesting for a while…
how’s everyone doing here?
sold USD/JPY @ 81.09; now 30 pips up and moving SL to BE.
doing good Toby; just tweaking with your system to take advantage of price extremes; hope you don’t mind. :0)
Well done GT, that’s paid off well for you. More testing required I think but it’s not a bad idea in times like these.
Unfortunately my last 4 trades have been bad ones because of the market turn around. It looks like this system as it is can be caught out by market turn around.
Hi I am a complete newby and have been read through this thread the last few days . I see you have made some pips. Very nice! I have a question which may seem a bit naive but please bear with me .
The SMA is showing an up trend with an inside candle, did you o short against the trend .? If so isnt this opposite to the original system ? I hope this question makes sense
Cheers
Wealth, GT posted earlier (just read back a few), that at the moment he/she is just using a slightly modified technique of placing a buy AND a sell at the extremes of the inside bars as they form. So yes correct it was a BUY, but with his/her modified technique, a sell was also placed at the bottom of the bar (-5 pips). It was in fact the sell that got triggered. Like i’ve said, Toby’s system is good in a trend up, but may fail a little during reversals. A lot of currencies have been doing reversals lately, so GT is trying a new method that catches this reversal…how to know when to use this though is another thing…
well said WANTED…
after the burning I got on the guppy trade and after watching the dollar/cad trade move strongly in the opposite direction of the trend I decided to go ahead and commit to placing orders on both ends of the dollar/yen signal (candle).
as I thought the price moved back with retracement. the chart looked overbought just like the guppy a few days ago.
as of now the trade stopped out at 20 pips profit, not as much as I hoped for but 20 pips is better than a kick in the tenders
sincerely mr. gt
Nice one GT.
Can I ask what are you using for indication of overbought/sold?? RSI?? and what setting?
I am a little concerned that Toby’s method can take a fair few losses at the start of a reversal and for a few days or weeks after as the 21 SMA plays catch up. catching all the trades along the way of the trend is good with toby’s method, no doubt about that, and probably outways the turnarounds…but like we’re seeing, there’s nothing for turnaround times like now. Toby any thoughts with you?
Ok I understand now . Thanks ! I will test it out .
The other thing I notice is that you guys see the inside candles at around midday London time (GMT) . Am I correct ?? As I am based in London
The overlap in trading zones is a little confusing. But I do eventually see the same inside candle you discuss. Not sure iif it should make a difference but it would appear that the closing candles may be formed at different times . I hope that makes sense ?
Anyway now that I know to place buy / sell at either end I should start to see some positive results . Thank again
few inside bars coming!!!
nzdusd
usdjpy
usdcad
gbpjpy
eurjpy
good luck guys!!! for newcomers follow the rules posted on page 1 of this thread, money management is important here.
@wan i think your right, this is the right time, hoping to get few pips for next few days!!
Nzdusd is clearly a short but what about usdcad? Ma21 is pointing down. Is it also a short for you?
Cheers
I basically observed that the price action was a bit overheated and questioned whether the r:r ratio would be in my favor if I had placed the trade in the direction of the trend. I did note however after the fact that the price had wandered quite a distance from the 20 sma; at its peak the divergence of the price from the 20sma was around 322 pips. I like the analogies of the rubber band and the stalling aircraft. A rubber band will only stretch so far before snapping back and an aircraft can only climb so steep before it loses lift and stalls. So I guess it’s a revision to the mean sort of thing. Don’t get me wrong I’m a huge fan of trading with the trend but as we all know trends change even if it’s for the short term. The beauty of this system is that by placing your orders outside the current trading range you have a good chance of catching a surge in your favor.
I also noted the symetrical triangle pattern on the hourly chart.